The U.S. is starting to do Chinese electric cars again
Since last year, the United States has successively introduced the "Infrastructure Act", "CHIPS and Science Act", "Inflation Reduction Act" and other bills, all of which contain discriminatory electric vehicle subsidy provisions, with the aim of stimulating the development of new energy vehicles in the United States and curbing Chinese car companies.
The proposed new rule would no longer be eligible for a tax credit of up to $7,500 under the U.S. Inflation Reduction Act (IRA) starting in 2024 if they contain battery components manufactured or assembled in countries such as China.
Affected by the new energy transformation of the global automotive industry and the vigorous promotion of national policies, China's new energy vehicle production and sales scale has ranked first in the world for eight consecutive years. At present, the penetration rate of new energy vehicles in China has exceeded 30%, and it is expected to exceed 80% by 2030.
1 September China's new energy vehicle exports 3890,000 units, more than doubling year-on-year, accounting for 18 percent of total exports4%。
China has a complete new energy vehicle industry chain, from core components such as batteries, motors, electronic controls to vehicle manufacturing, all have strong independent innovation capabilities. These advantages have enabled China's new energy vehicles to gradually lead global competitors in terms of performance and quality.
Chinese companies have also established core competitive advantages in the key upstream industries of new energy vehicles, especially in the battery field. Recently, A.T. Kearney, a world-renowned strategic consulting company, published a report saying that China's power battery has a particularly prominent competitive advantage in battery cell manufacturing, cell materials, battery production equipment, and electric drive and electronic control.
In terms of battery cell manufacturing, Chinese companies occupy more than 60% of the world's production capacity, monopolize the global lithium iron phosphate technology route, and are in the same leading position with Japanese and South Korean companies in the ternary lithium technology route.
In the field of electrode materials, Chinese companies occupy more than ninety percent of the world's production capacity, not only China's battery manufacturers, but also large-scale Japanese and South Korean battery cell companies.
In the field of battery production equipment, Chinese companies produce nearly eighty percent of the world's battery manufacturing equipment;Compared with Japanese and South Korean companies focusing on single equipment, China's leading equipment manufacturers have integrated delivery capabilities including front, middle and back.
Subsidizing the enterprises of their own countries is the way that the West has been accusing China before, because of the backwardness of technology in the past, China's products cannot be compared with Western countries, and can only rely on state subsidies to maintain competition.
Now it is the turn of the United States to start subsidy, but if American car companies can't catch up with China's technology in a short time, this kind of subsidy will not last long. As long as the technology is leading, it can't be stopped.
On December 1, the U.S. "Politico News Network" reported that the latest "suppression of China" by the United States may put Biden's own ambitions to develop the electric vehicle industry at risk, because the new rules may reduce the number of electric vehicles eligible for tax breaks and slow the transition of the U.S. auto industry from fossil fuels to new energy.